Initial jobless claims have decreased by 9,000, reaching 215,000 for the week ending April 12, indicating that the labor market remains resilient against federal layoffs and tariffs, at least for the moment. However, continuing claims have increased, with 1.89 million individuals now receiving unemployment benefits, the highest level since November 2021. This suggests that while businesses are not significantly laying off workers, hiring is stagnant. Federal Reserve Chair Powell reassured the market about the labor market's health, emphasizing the importance of price stability but noted potential risks posed by tariffs. Following his remarks, the likelihood of a 25 basis points rate cut in May diminished from 15% to 10%. President Trump criticized Powell again, expressing a desire for his removal prior to the end of his term in May 2026, though the legality of such an action is questioned.

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